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iPhone X Component Demand Weakening: DigiTimes

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Apple’s iPhone X suppliers are reporting that demand for the smartphone’s components are slowing, and some are concerned that this demand may be much lower than predicted for early next year.

A new report from DigiTimes reports that component shipments for the iPhone X weakened in November, following strong demand in September and October.

According to the sources, January and February shipments will be on the November levels, but there will be a sharp drop in March. The Q1 predictions are for a 30% drop compared to this outgoing quarter.

“With demand for key component not growing as strong as expected, the sources are concerned that Apple may reduce its iPhone X shipment target for the first quarter of 2018,” reads the report. “The sources pointed out that Apple’s component orders for the iPhone X in November were around 30% lower than its earlier forecast.”

Largan Precision and Catcher Technology, both suppliers for the iPhone X, have reported declining revenue month over month, while touch panel supplier General Interface Solutions, who expected its sales to continue into 2018 at its current level, also reported a decline in November revenue.

The sources claim that the declining demand for iPhone X components comes at a time when Apple is already capable of producing more units, as the waiting period for pre-orders has shortened from 5-6 weeks to just 1-2 weeks.

“With demand for key component not growing as strong as expected, the sources are concerned that Apple may reduce its iPhone X shipment target for the first quarter of 2018,” the report continues.

According to the report, there is speculation that consumers are waiting for more affordable iPhones to adopt the iPhone X design.

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